Experts have cast doubt on Indonesia’s newly passed omnibus law, raising concerns over whether it can effectively create jobs and attract investments, while bureaucratic reforms are left unaddressed.
The Job Creation Law revises more than 70 existing laws and regulations and promises to simplify business permits and land acquisition processes as well as ease foreign ownership requirements.
But experts and unionists are worried that this will come at the price of workers’ rights as the law alters the way minimum wages are set and employment disputes are settled.
Activists have also raised concerns over how the law bypasses the requirement for Environmental Impact Analysis, which was previously needed before factories can operate. Under the new law, only “high risk business activities” such as mining would require such analysis.
The law was passed on Monday (Oct 5) evening, a day before millions of workers were supposed to stage a three-day strike to oppose it. The Bill was originally planned to be deliberated by Members of Parliament (MPs) on Thursday.